A large bank that doesn't have a major presence in mortgages is on the prowl for acquisitions, at least that's what sources say. Which one is it? No one is being specific, but one thing is for certain -- plenty of mortgage companies have their ears open to offers. According to Don Henig of American Home Mortgage of Long Island, "tons" of mortgage firms are available for purchase. The publicly traded American Home hopes to be a buyer, but at the right price. American's Mark Filler (a former Prism Mortgage executive) is "aggressively" looking for deals, said Mr. Henig. For more details on deals see the Monday, Jan. 19 edition of National Mortgage News...
Processing Content
Meanwhile, there is an assumption in the business that the "bulk" market for servicing will take off soon. Cohane Rafferty, Griffin Capital and Phoenix Capital all are working on deals. Can Hamilton, Carter, Smith be far behind?
Of course, the servicing market is driven by interest rates. The yield on the 10-year has risen steadily since June, but lately the yield has been falling. (It was just under 4% at press time.) Few economists think the Fed will hike rates significantly this year. It's also an election year and keep in mind that Fed chairman Alan Greenspan is a Republican. Late this past week, the University of Michigan reported that its consumer sentiment index surged. According to Greenwich Capital, "Clearly, consumers were feeling good entering the new year." Happy consumers bode well for the purchase money market...
Ever hear of a company called Capital Title Group Inc? The publicly traded CTGI is a holding company with multiple subsidiaries engaged in issuing title insurance policies and performing other title-related services, including closing and escrow. It is based in Scottsdale, Ariz., and is not heavily traded...
Bad news for BridgeSpan, a title company and online closing specialist based in Frisco, Texas. According to news reports, the company has ceased operations. More than 200 BridgeSpan employees have been given notice. (See Monday's edition of NMN as well.) BridgeSpan's president is Larry Walker, a former EDS executive...
MGIC's shares rose almost 14% on Monday. Bears Stearns' analysts raised their rating on the shares to "outperform" and hiked its 2004 earnings estimate for the MI to $5.63 per share from $4.90. Bear also raised its price target for the shares to $75 from $65, saying the insurer is likely to lower its reserve additions in 2004...
Sandler O'Neill is initiating coverage of Provident Financial Services, Jersey City, N.J., with a "hold" rating, setting a $20 price target. Late last week it was trading at $18.70 or so. Jersey City sits across the water from Lower Manhattan and is south of Hoboken where home and condo prices are in the nosebleed territory. I should know -- I used to live in both places. The wife and I moved to Jersey City because Hoboken was getting too pricey. And this was 12 years ago. Today, folks who get priced out of Jersey City move to Newark or the Poconos...
Lew Ranieri's thrift, Franklin Bank Corp., of Texas, recently went public. In late December, Franklin bought Jacksonville Bancorp of Texas. This past Wednesday, Franklin CEO Anthony Nocella presided over the opening of the Nasdaq...
GO EAST YOUNG MAN: According to a recent published report, Chinese banks have $500 billion in bad loans that need working out. Perhaps, the Chinese government should start its own Resolution Trust Corporation ...
WASHINGTON NEWS: Apparently, new HUD (acting) secretary Alphonso Jackson isn't a union man. Mr. Jackson is under scrutiny for chewing out union employees at a department meeting that occurred in the Los Angeles office in October. Rep. Henry Waxman, D-Calif., wants an investigation of the incident. HUD's response? "We hope the IG resolves this as quickly as possible," a HUD spokesman said. (See NMN on Monday.) Meanwhile, topic "A" around the water cooler (in Washington at least) was former secretary Paul O'Neill's bashing of President Bush on " 60 Minutes." In short, Mr. O'Neill criticized the president for being aloof on the deficit and tax cuts. There was no mention of Fannie Mae or Freddie Mac on "60 Minutes." Mortgage fans might recall that Mr. O'Neill (who got the midterm boot) said early on in his tenure as secretary that he saw nothing wrong with the two. Interestingly, White House economic advisor Larry Lindsey came to the defense of the president in an op-ed in The Wall Street Journal . The president fired Mr. Lindsey during the same midterm housecleaning. Maybe Lindsey's hoping for a job in the next Bush White House.
MORTGAGE DATA NOTICE: The M&A market is heating up. To find out who might be buying whom, get a peek at the nation's top 100 lenders and servicers. It's all in the Quarterly Data Report. Also available is "National Mortgage News M&A Database" with information going back to 1996. For information about either product, contact contact Deartra Todd at Deartra.Todd@ThomsonMedia.com.
The online news service will not publish on Monday publish because of the Martin Luther King Jr. holiday.
